Nykaa IPO

FSN E–Commerce Ventures, which owns Nykaa and Nykaa Fashion, will begin accepting subscriptions for its initial public offering (IPO) later this week. Falguni Nayar promotes FSN, which is funded by private equity company TPG.

Before you subscribe to the IPO, below are certain things you should keep in mind.

Nykaa IPO Dates

The bidding for the third-largest initial public offering (after Zomato and Sona Comstar) in 2021 will begin on October 28 and end on November 1, 2021. If there is an anchor book, it will open for a day on October 27.

Information about the IPO

The IPO consists of a Rs 630 crore new issuance and a 4.19 crore equity share offer for sale (OFS) by many shareholders, including the promoters and certain investors.

TPG Growth IV SF Pte Ltd and Lighthouse India Fund III respectively would sell 54.21 lakh and 48.44 lakh equity shares through OFS, while promoter Sanjay Nayar Family Trust will sell up to 48 lakh equity shares.

Yogesh Agencies & Investments Pvt Ltd and JM Financial and Investment Consultancy Services, among others, would sell 25.38 lakh equity shares and 9.14 lakh equity shares, respectively.

Other shareholders, including Lighthouse India III Employee Trust and many more will sell 2.34 crore equity shares.

Employees would get 2.5 lakh equity shares out of the entire offering size.

The price brand

The price range has been set by the business in conjunction with merchant bankers at Rs 1,085-1,125 per equity share.

Raising Money

FSN E-Commerce intends to collect Rs 5,351.92 crore from the upper band and Rs 5,184.03 crore from the lower band.

The issue's objective

For the initial stage, the business plans to use the net funds from the new offering to invest in two subsidiaries - FSN Brands and/or Nykaa Fashion - as well as open additional retail locations (Rs 42 crore). The funds will also be used to fund capital expenditures and investments in companies such as Nykaa E-Retail, Nykaa Fashion, and FSN Brands, as well as warehouse construction (Rs 42 crore).

The cash will also be used to settle the company's and its subsidiary Nykaa E-debt Retail's (Rs 156 crore), as well as to boost brand recognition and visibility (Rs 234 crore).

The proceeds through the OFS route will be distributed to the selling shareholders.

About Nykaa

Nykaa is a consumer technology platform that provides consumers with a content-driven, lifestyle shopping experience. It was founded in 2012. The firm features a varied portfolio of beauty, personal care, and fashion items, as well as products under their own brand that they produce. There are two key verticals in which the firm operates:

Nykaa: Personal care and beauty

Nykaa Fashion specialises on clothing and accessories.